"An NASD Hearing Panel has now found that Frank Quattrone violated NASD securities rules. As the panel recognized, violation of these rules, 'undermines NASD's ability to carry out its regulatory mandate' and failure to respond 'is a serious offense.' Failure to cooperate in an NASD enforcement investigation impedes the ability of regulators to determine if investors and the markets have been harmed by improper behavior.

"For this reason we agree with the presiding hearing officer's dissent and take strong exception to the sanctions imposed. Anything less than a bar is inconsistent with the violations Frank Quattrone was found to have committed. Indeed, Mr. Quattrone still has not complied with his testimonial obligation before NASD despite the fact that he chose to fully testify about these matters in open court during his criminal trial. For these reasons, we will appeal the sanction to NASD's appellate body, the National Adjudicatory Council."